Phuket’s real estate sector is rapidly shifting into a prime arena for luxury developers as foreign buyers drive strong demand for second homes. Most purchases are cash transactions, especially in the 30-50 million baht pool villa segment along the island’s western coast, covering areas such as Cherngtalay, Bang Tao, Kamala, and Rawai.
Colliers Thailand reported total investment in Phuket property at 34.9 billion baht, showing solid confidence from both developers and investors. High margins and quick sales make pool villas the preferred option, with international clients often paying upfront.
Kromchet Vipanpong, CEO of AssetWise, said developers find greater ease selling luxury villas to foreigners compared with houses to Thai buyers. He explained that foreign demand is reshaping the market, with location, design, and service emerging as the main competitive factors. Larger brands are competing for scarce land while smaller firms collaborate on joint ventures in desirable zones.
Developers pointed out that foreign buyers value functionality above traditions like feng shui. The swimming pool remains the most essential feature, with demand for pools no shorter than 12 meters, designed for swimming rather than decoration.
Colliers predicted more Bangkok-listed companies will launch projects in Phuket during the second half of 2025, reinforcing the island’s status as a “cash-rich real estate battlefield.” Botanica Luxury Villas, for example, has teamed up with MontAzure to deliver a high-end development in Kamala, combining sea views with premium amenities.
Despite heavy activity, oversupply is not a concern because most projects follow a “build-as-you-sell” approach instead of mass pre-sales seen in the condominium market. The luxury price point also narrows the buyer pool, but demand—led by Russian investors—remains steady.
The market’s competitiveness was clear when AssetWise’s The Title Villa Estella at Nai Yang sold out all units within two months. Its private setting, beach access, and closeness to the airport were key factors in the project’s success.
